Previewing CRWD Earnings


Popular cybersecurity firm CrowdStrike (CRWD) is set to report 3Q22 earnings after the close Tuesday. CRWD is the epitome of an expensive, early stage growth company that has been hammered this year and I’m curious to see if they’re feeling the effects of the economic slowdown as well as if investors think enough damage has already been inflicted on the stock.

In its 2Q22 earnings report released three months ago CRWD guided 3Q22 revenue to $569.1-$575.9 million – compared to $535.2 million in 2Q22. They guided Non-GAAP EPS to 30-32 cents – compared to 36 cents in 2Q22. These seem like achievable targets.

The issue with CRWD is valuation. Based on their full year guidance they are trading at 15x revenue and 106x EPS. Assuming CRWD meets it guidance the other question I have is if investors think it’s a buying opportunity given the 50% haircut in the stock. Not that I’m not opining on CRWD’s technology or its long term prospects but simply where investors stand at the moment with respect to the earlier stage growth tech stocks that have been the main victim of the bear market.

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